Table of Contents I. L'aquila Area and The

FACTSHEETS

TABLE OF CONTENTS

I. L’AQUILA AREA AND THE ECONOMIC CONSEQUENCES OF THE EARTHQUAKE .... 2 Economy and Demographics ...... 2 Role of the University and the historical centre of L’Aquila ...... 4 Damage to key city assets and services ...... 5 II. LOCAL DEVELOPMENT STRATEGY FOR THE DISTRICT OF L’AQUILA ...... 7 Local analysis and incentives for development: research and environment ...... 7 The local development strategy ...... 8 The Projects underway...... 9 Annex 1: SWOT Local Analysis ...... 11 Annex 2 – Research and technology structures located in L’Aquila ...... 12 III. INSTITUTIONAL RESPONSIBILITIES IN THE RECONSTRUCTION AND ECONOMIC DEVELOPMENT OF L’AQUILA AFTER THE EARTHQUAKE (LAW 39/09) ...... 12 Governance in general ...... 13 Governance according to a sector of action ...... 15 1. Socio-economic recovery ...... 15 2. Reconstruction and repair ...... 16 3. Emergency ...... 17 4. Waste management and water sector ...... 18

I. L’AQUILA AREA AND THE ECONOMIC CONSEQUENCES OF THE EARTHQUAKE

At 3:32 a.m. of April 6th 2009, the Region of Abruzzo, in the center of Italy, was hit by a violent earthquake measuring 5.8 on the Richter Scale. The earthquake killed 300 people and injured 1,500. It affected roughly 300,000 people in the region and caused severe damage to the area’s public and private structures, and artistic and cultural heritage. Residents of the capital city of the region, L’Aquila, and of other 48 small towns in the province (“comuni del cratere”) were forced to leave their homes after the earthquake; 32,281 people have been relocated to 170 temporary camps, while 32.458 citizens have found temporary accommodation in hotels, rental homes, or with relatives.

Economy and Demographics

The earthquake struck an economy facing severe demographic and structural policy challenges. Historically, the province of L’Aquila economic level rose significantly in the late 1960s and 1970s, due in part to the development of the region’s infrastructure and industry, which included the establishment of SIV and Siemens plants in the Province of L’Aquila. As a result, its economic performance, even if under the national average, ranked above that of other central and southern regions. Nevertheless, in the last ten years the economic growth of L’Aquila province slowed down: its per capita GDP is now around 80% of the national average and in the economic ranking of Italian provinces it is now seven positions lower than eight years ago. Since 2001, the per capita GDP in the province of L’Aquila has been lower than the per capita GDP of the Abruzzo region. The employment rate of the province is equal to 57.7% (while 59% in the region). The province also has the highest unemployment rate (7.7%) in the region for both men (5.8%) and women (10.3%) and very high youth unemployment rates. With the exception of the city of L’Aquila, which is home to the University of L’Aquila, the earthquake struck rural communities affected by decreasing population and rising elderly dependency rates (Figure 1).

Figure 1. Figure 1: Population growth and elderly dependency rate

Source: CRESA – Centro Studi e ricerche economic sociali Abruzzo

The economic structure of the province of L’Aquila is mainly based on construction, retail and other services. The agriculture sector has also provided value-added activities, including rural tourism, and the nearby Parco Nazionale del Gran Sasso e Monti della Laga have attracted visitors to the area (Figure 2).

Figure 2. Figure 2 Local units and employment by sector, city of L’Aquila

Figure 3.

Source: CRESA calculations from ISTAT The city of L’Aquila, which concentrates 50% of the economic activities of the area affected by the earthquake, had benefited from a comparatively high standard of living; per capita income and property tax revenue in the city of L’Aquila had been higher than in the Region of Abruzzo as a whole (Figure 3). The city of L’Aquila benefits from additional assets that can be drawn upon to facilitate economic growth. The city and surrounding areas are home to entrepreneurial small and medium enterprises (SMEs) and a few multinational firms open to the international market. These could become engines of regional innovation and economic growth. The city also benefits from the presence of a hospital that attracted users from outside the province and region. Finally it is home to all the government offices typical of a regional capital.

Figure 4. Figure 3: Per head income and property tax, L’Aquila, other towns and Abruzzo region

Source: CRESA – Centro Studi e ricerche economic sociali Abruzzo Role of the University and the historical centre of L’Aquila

The University of L’Aquila is a primary contributor to the regional and is the largest contributor to the city of L’Aquila’s economy. This contribution has taken the form of employment opportunities, rental income from students, and the consumption of local goods and services by students and university employees. The university has experienced significant growth since 2000, thanks also to a national reform which has introduced shorter curricula. The university enrolled 27,168 students for the 2008-09 academic year, with an increase by more than 25% in the past five years. The biggest faculties are engineering, medical school, teachers college and science and math (Figure 4).

Figure 5. Figure 4: Students of the University of L’Aquila, year 2007-2008

% on total variation with Faculty Students students 2003-04 (%)

Biotechnology 1,293 7.0 194.5

Humanities 2,580 13.9 -0.6

Medical school 4,794 25.8 53.1

Physical education 1,121 6.0 31.1

Math, physics and science 3,040 16.4 2.4

Engineering 6,430 34.6 23.1

Economics 1,880 10.1 12.7

Psychology 2,496 13.4 324.5

Teachers college 3,534 19.0 -11.7

Total 27,168 146.3 26.5

Source: University of L’Aquila. Figures include undergraduate and graduate courses Around 13,000 students came from outside the province and lived in the city of L’Aquila (mainly in rented apartments), and an additional 3,500 students commuted daily from around the province. Total expenditures by University students, including lodging and transportation, have been estimated around 220 million euro per year, equal to 16% of the value added of L’Aquila city (Figure 5).

Figure 6. Figure 5: Estimated yearly expenses by University students

Yearly average Number of expenses (million Students students euro)

resident in L'Aquila 9,990 64

commuters from the province 3,000 - 4,000 17,5 - 23

coming from outside the province 13,000 - 14,000 135 - 150

Total 26,000 - 27,000 220 - 235 Source: CRESA calculations on University of L’Aquila data The historical centre of L’Aquila has been a key attraction for students, second-home owners, and visitors, as well as a source of pride for residents. Its cultural features, including the Basilica di Santa Maria di Collemaggio and the city’s Castle, attracted tourists, primarily from Rome and other nearby regions.

Damage to key city assets and services

The earthquake demonstrated the unsafe state of many public buildings. Immediately following the earthquake, authorities closed all school and university buildings as a precautionary measure until actual damage could be assessed. A month after the earthquake almost 30,000 surveys were conducted to evaluate damage to housing structures, schools, public buildings, manufacturing sites, hospitals and barracks.

The city’s historical centre and artistic and historical patrimony suffered great damage in the earthquake, particularly to medieval monuments and churches. Expert teams have begun assessing damage to artistic and architectural works in and around L’Aquila and recovering what remains. The earthquake’s destruction of the historically or artistically significant buildings also set back the tourism sector, which had been expanding and had been considered a promising source of future growth.

The historical centre hosted roughly half of all the city’s retail establishments and professional services, which generated on average about 200 and 90 million a year, respectively. When the output generated by student rents (around 90 million euro per year) is added to this figure the historical centre’s output made up roughly 30% of value-added output produced in the City of L’Aquila. Professionals, who had increasingly established businesses and made their home in the historical centre, suffered a large share of the casualties during the earthquake and were forced temporarily to move their offices out of the centre. It is unclear whether they will return to rebuild (Figure 6). Figure 7. Figure 6: Estimated revenues generated by some economic activities in the historical centre of L’Aquila

Economic activity Yearly average revenues number as a % of the total in the million euro as a % of the value city of L'Aquila added of the city of L'Aquila

Retails and hospitality services 700 - 800 50 200 - 230 14%-17% Professional activities around 1.000 42 90 7%

Students renting (around 2,500 apartments) 8,000 - 9,000 57 85 - 95 6%-7%

TOTAL 10,000 - 11, 000 55 380 - 415 29%

Source: CRESA calculations on data from Confcommercio, Consorzio centro storico, University of L'Aquila, Ordini professionali, Agenzia delle Entrate

The area’s large companies and small to middle manufacturing enterprises also suffered heavy damage to infrastructure, equipment, and machinery. According to some estimates, the production capacity is now reduced to 60-70% and a further reduction in the internal demand is expected in the following months.

The earthquake damaged several buildings at the University of L’Aquila, the primary contributor to the city’s economy. Several students were killed when their student residence collapsed. Two weeks following the earthquake some of the university’s academic activities resumed in tented areas, but many students have temporarily transferred to other universities in the region to complete their term. There is a real risk that many students, particularly those who come from outside L’Aquila province will not return to the University of L’Aquila for the 2009- 10 academic year. GOV/TDPC/RD(2009)7

II. LOCAL DEVELOPMENT STRATEGY FOR THE DISTRICT OF L’AQUILA

Local analysis and incentives for development: research and environment

The development strategy defined by the Region of Abruzzo together with the economic and social actors emphasizes two key assets of the area which have not been sufficiently valorised (see Annex 1 for the analysis of strength and weaknesses of the area):

 The presence of the University and significant public and private research centres;

 The abundance of local, cultural and environmental resources.

The province of L’Aquila is home to an important university campus, with more than 20,000 students, with a strong technical-scientific vocation and linked to the presence of important research groups and degree courses consolidated in the national and international panorama. In 2004, the national evaluation carried out by the Ministry of Education (MIUR) highlighted four areas of excellence: Chemistry, Physics, Mathematics and the Humanities.

The Departments of the University of L’Aquila have links and cultural and scientific exchanges with research centres all over the world. Many researchers interact with the productive realities present in and around L’Aquila, operating in high technology sectors (chemical- pharmaceutical and applied biology, telecommunications, energy, IT), or with the faculty of Medicine for research and applications in the field of mechanical bio-engineering.

In addition to the university centres, the district of L’Aquila is home to numerous and important private and public research centres which contribute to the overall technological strength of the area (see Annex 2).

The environmental assets include a large National Park (Gran Sasso and Monti della Laga, 135,000 hectares in the Abruzzo section) and a Regional Park (Sirente-Velino, 60,000 hectares), as well as numerous areas of natural interest, with a great variety of flora species (approximately 2,000 species of plants from the remainder of the last glaciations to some groups of the Mediterranean variety) and fauna (there are deer, roe-deer, the Apennine wolf, the marsicano bear, various small mammals such as badger, marten, skunk, rodents and felines, birds of prey, and various species of reptiles and amphibians).

The cultural assets in the district of L’Aquila (44 municipalities) include:

 989 assets worthy of protection in virtue of their architectural features (563 churches, 225 palaces, 88 fortified towers and castles), only 290 of which are located in the city of L’Aquila;

 a widespread presence of “cultural sites” (archives, libraries, cineteques and mediateques, conference halls, botanical gardens, research laboratories, museums): there are 82 in the district, 51 of which concentrated in L’Aquila; GOV/TDPC/RD(2009)7

 an equally widespread presence of cultural and entertainment events (there are 70 in the district, only 32 of which in L’Aquila).

 there is a rich heritage of wine and food products, albeit not adequately protected with regard to their specific types: from the saffron of L’Aquila, to various vegetable products (spelt, lentils, bread and oil beans, chick peas), to pecorino cheese, honey, typical cured meats (including Mortadella di Campotosto).

 Finally the entire province is considered safe for people and firms with very limited crimes.

The local development strategy

The local development strategy is set out in the Local Action Plan for the District of L’Aquila, prepared by the Region and the economic and social actors in December 2008. The Plan sets out a number of priorities. Together with the need to reinforce the local governance, the strategy has been divided into three major themes:

1. The strategy for research and technological innovation, in order to:

 reinforce the technological connotation by making the University the motor of development for the Area;

 innovate the local productive system by encouraging technological innovation, processes of productive integration, processes of dividing into districts and agglomeration;

 find job opportunities for qualified workers;

 upgrade skills, especially in the technical-scientific area.

2. The strategy for infrastructures in order to, on the one hand, improve the connections (roads and railways) between L’Aquila and the the major routes and directives of national and international transport, and on the other hand to consolidate and improve the link between the district of L’Aquila with Rome.

3. The strategy for valorisation of natural and cultural resources, which identifies the need to focus on:

 Broaden mountain tourism to a fruition also in the summer: currently the Gran Sasso (Campo Imperatore), Campo Felice and in the municipalities of the Altopiano delle Rocche (Ovindoli, Rocca di Mezzo and Rocca di Cambio) are touristic resort mainly used in the winter;

 consolidate and increase cultural and religious tourism in the provincial capital and surrounding area;

 develop of environmental, cultural, wine and food and crafts tourism in the park areas. GOV/TDPC/RD(2009)7

 In this specific framework the strategy can build upon the previous experiences of local programming such as Integrated Territorial Project 2000-2006.

The Projects underway

The Regional strategy for Research and Innovation is formalised within the PRIA (Abruzzo Programme of Research and Innovation): the central idea is that the entire regional system (businesses and institutions) be encouraged to make technological innovation and develop knowledge through an increasing centrality of R&D investments and technologies developed by businesses, progressive development of actual relations between firms, University and Public Research Organisations (EPR), and strong involvement of institutional and social Partnership.

Resources must be channelled towards the most representative sectors, identified through mapping and analysis of technological clusters, capable of acting as “motors” of competitive development locally: ICT-Electronic, automotive, food and agriculture, to which can be added the pharmaceutical sector and logistics, already well rooted locally, and emerging technologies such as bio-technologies for health care and renewable energy, and even more bio-energy, in which the region is extraordinarily rich.

Besides the presence of some large firms in ICT-Electronic and pharmaceutical, many of the firms in traditional sectors are small, with little capitalisation, slim ability for independent innovation and linked only to the local economy.

Thus, the strategy identifies actions for Research and Innovation with integrated actions seeking to reinforce and support competitive and attractive factors for investment, through increased infra-structure provision, granting of advanced services and availability of assistance for regional objectives.

All the investments must be compatible with the criteria of sustainability and environmental innovation.

The local strategy for tourism and the environment forms part of an Integrated Local Project (PIT). The guiding idea identified for the L’Aquila Area PIT is “Memory of the Future in L’Aquila Abruzzo”. The general objective of the integrated local project is to “be able to organise the local resources around the identity, culture, environment and economic activity, as an integrated system capable of attracting greater flows of visitors and therefore to determine an increase in consumption linked to local exploitation and visits”.

The consideration on which this objective is based is that the most important local resource is the widespread heritage of elements of identity (historical, artistic and natural, wine, food and handicrafts, traditions, etc.), which assume relevance as a touristic attraction, when taken together as a whole.

As a result, the first challenge is to be able to “organise” and “communicate” this heritage in such a way that it can be effectively understood and exploited as an “integrated system”.

In order to reach this general goal, the PIT identifies 3 specific objectives, each of which with one or more actions: GOV/TDPC/RD(2009)7

 valorisation of the individual touristic sites, which is to say improve the accessibility and appeal of the sites of tourist interest, hospitality and information;

 improvement of the quality and range of local tourism services, through improvement of qualities and facilities of firms and services and tourism operators;

 improvement of the local context, through valorisation of local production supporting projects of technological, processing and organisational innovation and the reduction of consumption of the natural resources which contribute to improving the “green” image of the area.

The Strategic Plan for the city of L’Aquila, the preliminary document approved with Municipal Council Resolution (n. 83 of 19.03.2008), is also based on a project which identifies the following principal strategic points:

 culture and environment: factors for a new offer;

 the mountain as a major resource to be valorised;

 training, research and high tech;

 maintain and increase the quality of life. GOV/TDPC/RD(2009)7

Annex 1: SWOT Local Analysis

STRENGTHS WEAKNESSES  Vast local areas are protected (Regional Park  Population decreasing in internal area; and National Park, SIC, etc.);  Lack of attractions and quality in the  Presence of tourism sites with good aspects management of tourism sites; of “authenticity and individuality” ;  Few attractions and low level of care  Wide experience of shared processes for in residential contexts, both cultural sustainable development (both territorial and and natural; environmental) Integrated Development  Tourist operators have little knowledge Planning, local agenda 21; of environmental features of interest,  Lack of organisation in the “Area quality”;  Low level of competence of tourist  Good offer of local wine and food products; operators;  Provision of an IT system;  Low energy production from  Presence of activities realised in unified local alternative sources. network for tourism and between local operators;  Historical, cultural, handicraft and gastronomic traditions;  Presence of a high number of holiday homes;  Non-hotel hospitality project, farm stay holidays ( agrituristism) and holiday homes, free time. OPPORTUNITIES THREATS  Increase in national and international demand  Population decreasing in internal for natural and cultural tourism; areas;  Increasing trend in request for non-hotel  Threat of brain drain and loss of hospitality; professionals would could support the  Presence of large areas of proximity and tourism sector; strong growth in tourism from nearby;  Loss of competition for hospitality  According to all the sector scenarios, the offer; rates of growth of the volumes of request in  Strong competition from other the tourism sector are strong, stable and consolidated tourism area, launched constant over the medium and long term; through a planned policy which has  Strong segmentation and more requests (by produced positive results; income, generations, levels of education,  New international competitors can place of residence, consumption habits, etc.). count on innovative quality products and services. GOV/TDPC/RD(2009)7

Annex 2 – Research and technology structures located in L’Aquila

The University of L’Aquila is home to approximately 27,000 students, and has active faculties of Economics, Engineering, Humanities, Medicine, Psychology, Bio-technical Sciences, Education, Mathematics, Physics and Natural Sciences, Pysical Education. The technical-science aspect linked to the presence of important research groups and degree courses is consolidated in the national panorama. The evaluation undertaken by MIUR in 2004 highlighted Chemistry, Physics, Mathematics and the Humanities as areas of excellence.

Cetemps and DEWS are among the most important centres of research excellence at the University of L’Aquila. Cetemps (Centre of Excellence - Tele-survey and Numerical Modelling Techniques for Prediction of Severe Meteorological Events) is involved with meteorological and hydrological monitoring, tele-surveys from earth and satellite. Cetemps works in close collaboration with the national Department of Civil Protection and with the Abruzzo Region. For these institutions it has prepared and monitored complex systems of tele-survey of meteorological phenomenon and the quality of superficial waters and the air. The DEembedded Controllers, Wireless Interconnect and Systems-on-chip (DEWS) works in various fields of research, with applications in advanced electronics, such as planning, realisation and management of networks of wireless sensors and activators, with applications in the management of local area, medicine and food sciences.

The Gran Sasso National Laboratories, one of the biggest subterranean research centres in the world, are home to the National Institute of Nuclear Physics (INFN), with theoretical and experimental research in the fields of nuclear and sub-nuclear physics and astro-particles and experiments in nuclear astro-physics and particle physics and, recently, also biology.

There are three different Institutes of the National Research Council (CNR) located in L’Aquila. The Institute for Organ Transplants and Immuno-citology (ITOI) is based in L’Aquila and also works at three other sites (Bologna, Chieti and Rome), developing research applied to human pathology and problems associated with transplant and dialysis. The Institute for Construction Technology (ITC) undertakes research in the field of new materials and new construction techniques. The Centre for Scientific and Technical Assistance to Business (CASTI) is located within the Department of Physics of the University and has already had many collaborations with local firms in the field of characterisation of materials to resolve high technology problems (breakdown analysis, product quality checks and development of productive processes).

Among the private research centres, we can name the Technolabs laboratories, which plan electronic apparatus and devices, Filmet, which develops metalised films, G&A Engineering, which develops applications for micro-electric technologies and technological processes for the space industry, TILS (previously reiss Romoli), the Corporate School of the Telecom Group, a point of reference for advanced training and continuous professional development in the field of telecommunications and more in general ICT.

The Abruzzo Science and Technology Park, has two Centres of Innovation: Systems Integration, which works in the technological re-qualification of PMI systems, and Environmental Sensors, which develops research within the context of the environment, the local area and associated phenomena.

III. Institutional responsibilities in the reconstruction and economic development of l’aquila after the earthquake (law 39/09) GOV/TDPC/RD(2009)7

The Legislative Decree 39/09, with which the Italian State regulates and finances emergency actions and the process of reconstruction following the earthquake in L’Aquila, will come into legal effect on 30/6/2009.

The system of responsibilities set out in the Legislative Decree 39/09 is quite complex. It involves different layers of governments (in line Ministers, Central, Regional and Local Authorities), with different responsibilities according to the varied sectors of actions. The first section of this document sets out the general governance. The second section summarizes the key elements of governance and the actors involved with respect to four sectors of action identified in the legislative decree 39/09: socio-economic recovery, reconstruction, emergency actions and waste and water management.

Governance in general

The legislative decree 39/09 concern individuals living, firms operating and organisations with offices, in the municipalities affected by the earthquake which occurred in the Abruzzo region on 6 April 2009 identified with a decree of the Commissioner delegate (Head of Civil Protection)1. Some actions may also concern assets located outside the area of the municipalities in the presence of a direct causal link between the damage suffered and the seismic event2.

The State and the Regional and Local Governments shall participate in the process of reconstruction according to the responsibilities and methods herein described. In most cases, the State works through a process of collaboration with local organisations.

The Central Government is required to provide the Parliament with an annual report on the state of advancement of the post earthquake process of reconstruction, also with reference to the use of public resources allocated to this purpose.

In order to monitor the progress of the projects of reconstruction, the President of the Abruzzo region shall make use of the Evaluation Team of the Inter-Ministers Committee for Economic Planning (CIPE) at the Cabinet of Ministers. The President of the Region shall prepare a report every six months on the implementation of the reconstruction for the Prime Minister, who will submit it to the Parliament.

The State shall exercise its own prerogatives through Ordinances and Decrees issued by the Prime Minister. The aforementioned Ordinances are issued together with the Ministry of Economy and Finance, with regard to fiscal and financial issues.

A Commissioner delegate (Head of Civil Protection), operating on the mandate of decrees, is responsible for actual management of the emergency activities, including the provision of temporary accommodations for the residents who have lost their houses. A plan has been issued to build by the next five months temporary houses in 20 areas to host around 12,000 people (so called project C.A.S.E.).

The President of the Abruzzo Region is identified as Commissioner delegate for the socio- economic recovery. He will define together with the interested municipalities and in understanding with the Province, the strategic planning for the development of the area. The Commissioner will be assisted by four assistant commissioners for specific sectors of action.

1 Published in the Official Gazette n. 89 of 17/4/09. 2 Those set out in article 3, paragraph 1, with the exception of those set out in letter f., GOV/TDPC/RD(2009)7

The Mayors, together with the Commissioner delegate (President of the Region), hold reconstruction plans for the historical parts of their cities. Waste and water management are under the responsibility of the Mayors and the Province, together with the Ministry of Environment. GOV/TDPC/RD(2009)7

Governance according to a sector of action

1. Socio-economic recovery

The Municipalities affected by the earthquake, in understanding with the President of the Abruzzo region - Commissioner delegate (article 4, paragraph Strategic 2), having taken advice from the president of the Province, and in planning understanding with the latter regarding matters of her responsibility, are responsible for re-organisation of the municipal area defining the lines of strategic direction in order to ensure socio-economic recovery, the renewal of residential areas and guarantee harmonious reconstruction of the urban residential and productive area, also taking into account the temporary houses built according to paragraph 1.

The Ministry for Economic Development, together with the Ministry of Economy and Finance, can establish the creation of guarantees on bank loans free of charge for small and medium size enterprises, including those in the commercial, agricultural and tourism sectors, as well as professional services, Support for according to specific coverage percentages. businesses Following a proposal from the Ministry for Economic Development and having taken advice from the Abruzzo Region, the Inter-ministerial Committee for Economic Planning (CIPE) shall identify and create a perimeter for urban free zones, within the framework of the municipalities of the Province of L’Aquila and those set out in article 1 of this decree.

With a decree from the Ministry of Economy and Finance, together with the Ministry for Economic Development, it will be possible to establish the application, alternatively to the establishment of an urban free zone, of a specific tax incentive regime, subject to European authorisation.

With a resolution from the CIPE, a quota of the resources set out in the Strategic Local Fund to support the real economy can be used to finance programme agreements already signed for fulfilment of the assistance actions as set out in Legislative Decree n. 120, dated 1 April 1989, converted, with modifications, by law n. 181 dated 15 May 1989 and subsequent modifications, or those to be signed. The National Agency for attraction of investments and business development is responsible for the actions indicated in this paragraph.

Provisions adopted pursuant to article 1 govern methods for sending to the Abruzzo region the quota of available resources from the Fund for Youth Policy for initiatives to support the young generations of the Abruzzo region affected by the earthquake in their region, as well as the methods of monitoring, implementation and reporting on the initiatives undertaken. GOV/TDPC/RD(2009)7

2. Reconstruction and repair

The Mayors of the Municipalities hold reconstruction plans for the historic old Planning towns of the cities in understanding with the President of the Abruzzo region - Commissioner delegate and in understanding with the president of the Province in the subjects for which they are responsible.

The competent party with regard to planning is usually the Municipality which prepares and approves the Plan. Before definitive approval, the Conference of Services meets with the Region and Province and/or other Organisations to check conformity of the plan. The Understanding is a legally strong term, with reference to the preparation stage, but in this case it would be justified by the state of emergency. Upon request from non defaulting debtors, the State shall take over (for an amount not greater than EUR 150,000) the debt deriving from pre-existing loans guaranteed by properties which are used as principal residence and destroyed, at the same time transferring rights of ownership over the aforementioned properties to Fintecna spa, or the subsidiary company it indicates.

Takeover of Within one year from the date of implementation of the conversion law for this mortgages decree, the Municipalities shall approve plans for recovery and use of the areas on primary acquired by Fintecna, or the subsidiary company it indicates, in order to encourage homes the recovery of economic and social activities. Within three years from the same date, the Municipalities can purchase the rights of ownership of the areas which are the object of the transfer itself not yet built from Fintecna spa, or the subsidiary company it indicates; the price is the same as that paid by the company, with only the increase in legal interest.

Reconstructi The Ordinance from the Prime Minister: on and - Defines criteria and methods for transmission to the Region or the Municipalities functionality affected by the earthquake of 6 April 2009, of government buildings which can no of buildings longer be used or which can be decommissioned. and public - Defines the methods of preparation and implementation of the Action Plan for the services restoration of public buildings damaged by earthquakes; - in understanding with the local authorities involved and with the Abruzzo Region, having taken advice from the mayors of the Municipalities involved, the Ministry of Infrastructures and Transport prepares the action plan. - The works are overseen by the President of the Abruzzo region acting as Commissioner delegate taking advantage of the competent inter-regional department for public works and competent provincial scholastic offices. An Ordinance from the Italian Prime Minister defines the organisational methods to allow the rapid recovery of the work of government offices and the provisions necessary to ensure fixed and continuous economic treatment for personnel not working because of office closure. Emergency The Municipalities shall prepare the plans within six months from the issue of this plans law. After this date, the Prefects will take over this responsibility.

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3. Emergency

The Commissioner delegate (Civil Protection) approves the plan Urgent preparation of of action subject to the opinion of a specific Conference of Services. homes In understanding with the President of the Abruzzo Region and having taken advice from the Mayors of the Municipalities involved, the Commissioner delegate provides for leasing of areas for building, also in departure from current town planning regulations.

The assignment of homes is made by the Mayor of the municipality in question.

Emergency works National Civil Protection Service, National Body of Firemen, Armed Forces and volunteers

With the Reform of Title V of the Italian Constitution (Constitutional Law n. 3/2001), the Civil Protection service has become the subject of concurrent legislation so that the Regions could pass relevant legislation, with the exception of the fundamental principles which remain the competence of state legislation; The Abruzzo Region has regulated the matter with its own Law n.72 dated 14/12/1993, much prior to the Reform of Title V and the new institutional order re-designed with the constitutional amendment, so that it appears to limit regional competence in respect of the Constitution. The competences of the National Civil Protection Service, without relevant regional regulation, are set out and listed fully in article 5 of Legislative Decree n. 343, dated September 2001, as converted by Law n.401 9/11/2001 and returned to the Italian Prime Minister – Department of National Civil Protection also taking into account what is set out in article 12 of law n.225, dated 24 February 1992.

Provisions for families, The competent authorities as per usual. workers, businesses

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4. Waste management and water sector

In departure from article 183, paragraph 1, letter b), of Legislative Decree n. 152, dated 3 April 20063, waste producers are the municipality of origin of the waste itself, which inform the Commissioner delegate of the data relative to the activity of collection, transport, selection, recovery and processing of waste undertaken and reports the relative charges.

Storage, With due respect for European legislation, the Municipalities are transport and responsible for removal and transport of materials as set out in paragraph 1 processing of herein on public or private areas by parties in possession of the necessary materials qualifications, in departure from the procedures set out in article 242 of 4 produced by Legislative Decree n. 152, dated 3 April 2006 and provisions regarding the demolitions collection and transport of dangerous waste, with the assistance of the Regional Agency for the protection of the environment of Abruzzo and the relevant local ASL, in order to ensure adequate hygiene conditions to protect public health and the environment.

Within the framework of the Federal Council, ISPRA (a national organisation) ensures co-ordination of the activities of the Regional Agency for protection of the environment in Abruzzo pursuant to this article, as well as the necessary technical-scientific support for the Abruzzo region.

In departure from article 212 of Legislative Decree n. 152, dated 3 April 2006, the terms of validity of registrations in the National Register of environmental managers undertaken by the regional section for Abruzzo of the same Register, are suspended until restoration of operations of the regional section of the Register. During the transition period, variations and new 5 registrations have been undertaken by the National Committee of the Register.

In departure from articles 182, paragraph 7, 191, 208 and 210 of Legislative

Decree n. 152, dated 3 April 2006 and subsequent modifications, as well as in article 8 of Legislative Decree n. 36 dated 13 January 2003 and subject to speedy technical verification of the existence of the conditions of environmental safety and residual volumes, to be undertaken with the technical-scientific support of the Superior Institute for environmental protection and research, the Region will identify rubbish dump sites for waste processing as set out in this article. After having taken advice from ISPRA, they shall adopt provisions for adjustment and

3 Usually, the producer is the party who produces waste or has undertaken operations changing the composition of waste. 4 Operative and administrative procedure to be adopted in case of an event potentially able to contaminate the sites which require respect for the regional waste plan, the specifics of the sites and the relative regional authorisation. 5 Article 212 paragraph 6 allows for renewal of registration every 5 years.

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completion of the environmental restoration works as set out in article 17 of Legislative Decree n. 3, dated 13 January 2003, also after any usage.6

With an ordinance issued by the Italian Prime Minister, adopted pursuant to article 5, paragraph 2, of law n. 225, dated 24 February 1992, together with the Ministry of the environment and protection of land and sea, having taken advice from ISPRA, the operative methods for waste management as set out in this article can be defined.

Pursuant to article 101, paragraph 1, of Legislative Decree n. 152, dated 3 April 2006, and subsequent modifications and additions, the Province of L'Aquila, or the competent local authority if the rubbish dump contains public sewage, can issue a new authorisation provision to the owners of the rubbish dumps, having taken advice from the relevant ISPRA and ASL for the area, if there is sufficient technical-structural damage to determine a significant reduction in the depurative effectiveness of the plant7. Depuration, hydro- Further documentation can be requested from the Province or the local geological authority but also from ISPRA and ASL. emergencies and Within forty-five days from the date of implementation of this provision, management the Ministry of the environment and protection of land and sea shall commence of water the National Programme for the coordination of monitoring, verification and resources consolidation initiatives of plants for management of water services. The Programme is prepared by the National Commission for monitoring of water resources, which is established from the date of implementation of this provision, at the Ministry for the environment and the protection of land and sea, taking over the competences already attributed to the Regulator for water resources and waste pursuant to articles 99, 101, 146, 148, 149, 152, 154, 172 and 174 of Legislative Decree n. 152, dated 3 April 2006 and later attributed to the Committee for monitoring of water resources, which, from the same date, is closed.

The Programme is created by the Commission as set out in the previous paragraph, with the technical-scientific and operative support of ISPRA, at a regional or inter-regional level, starting from the area of the Abruzzo region.

The activities are undertaken by ISPRA within the framework of the human, instrumental and financial resources at current legislation.

6 Extraordinary procedure: the Region can identify new sites also aligning them with the new requirements according to ISPRA. 7 Authorisation can be obtained for provisional rubbish dumps in order not to limit the depuration capacity in case of damage to the original rubbish dump.